In this article, we will be taking a look at the Top 6 Stock Picks of Dennis Hong’s ShawSpring Partners.
ShawSpring Partners LLC is an investment management company founded in 2014 by Dennis Hong. The firm follows a long-term investment approach with the objective of generating high absolute returns. It had $1.6 billion in assets under management, as of December 31, 2021.
Dennis Hong is the managing partner and founder of ShawSpring Partners. Dennis Hong’s investment career started as a Financial Analyst at the Yale University Investments Office after graduating from Yale with a B.A. in 2005. Following this stint, Dennis Hong worked as an Associate at Matrix Capital for two years after which he moved on to Altimeter Capital as a Principal. Later, he went to Harvard University and completed one year of MBA Program, leaving it halfway through to form ShawSpring Partners.
ShawSpring Partners follows an investment policy focused on three business types: scaled aggregators such as marketplaces, vertically integrated and capital-intensive businesses, and cognitive referents (category kings). Its portfolio generally comprises of 5-10 high-growth businesses across technology, internet, and consumer sectors.
Dennis Hong’s ShawSpring Partners’ past and present 13F portfolios have contained some of the leading companies across their industries such as Snowflake Inc. (NYSE:SNOW), Match Group Inc (NASDAQ:MTCH), Block, Inc (NYSE:SQ), and others.
Photo by Nicholas Cappello on Unsplash
Methodology
We have picked the top 6 stocks from ShawSpring Partners’ latest 13F holdings as of June 30, 2022. The stocks have been ranked based on the value of Dennis Hong’s stake in each company.
6. Blend Labs Inc. (NYSE:BLND)
ShawSpring Partners’ Stake Value: $20,140,000
Percentage of ShawSpring Partners’ 13F Portfolio: 3.56%
Number of Hedge Fund Holders: 12
Based in San Francisco, California, Blend Labs Inc. (NYSE:BLND) provides a cloud-based software platform for financial providers that facilitates banking experiences across consumer banking products, and mortgage products, among others. It boasts more than 350 customers including banks, fintech, and credit unions such as Wells Fargo, U.S. Bank, M&T Bank, SWBC, Navy Federal Credit Union, and more. Its platform was used for processing of $4.9 billion in loan application volumes per day in 2021.
Blend Labs Inc. (NYSE:BLND) was added to ShawSpring Partners’ 13F portfolio in Q1 2022. The investment was increased by 14% in Q2 2022, compared to the previous quarter, bringing ShawSpring Partners’ ownership to 8,534,033 shares, accounting for 3.56% of the hedge fund’s 13F portfolio.
Canaccord analyst Joseph Vafi lowered the price target on Blend Labs to $4 from $5, while maintaining a ‘Hold’ rating on the shares.
According to the Insider Monkey data covering nearly 900 hedge funds, 12 hedge funds were long Blend Labs Inc. (NYSE:BLND) as of Q2 2022, holding shares with total value of $83 million. Its largest shareholder was Tiger Global Management LLC with ownership of 14 million shares valued at $33 million.
5. Snowflake Inc. (NYSE:SNOW)
ShawSpring Partners’ Stake Value: $34,765,000
Percentage of ShawSpring Partners’ 13F Portfolio: 6.15%
Number of Hedge Fund Holders: 65
Snowflake Inc. (NYSE:SNOW) is a leading cloud platform provider allowing customers to use its Data Cloud platform to unite siloed data, discover and securely share data, and execute diverse analytic workloads. Customers use its platform to execute workloads including applications, collaboration, cybersecurity, data engineering, data lake, data science, data warehousing, and unistore. It boasts 6,800 customers including notable names such as Airbnb, AT&T, Adobe, DoorDash, Dropbox, Electronic Arts, BlackRock, and Instacart, among others.
Snowflake Inc. (NYSE:SNOW) was a new addition to ShawSpring Partners’ 13F portfolio in Q2 2022. The cloud software company accounted for 6.15% of the 13F portfolio with 250,000 shares owned by the hedge fund.
Following the earnings release, analysts at Truist and Loop Capital raised price targets on Snowflake Inc. (NYSE:SNOW) shares while maintaining a ‘Buy’ rating for the stock. Loop Capital is targeting a $210 share price while Truist has a $225 price target on Snowflake Inc. (NYSE:SNOW) shares.
As of Q2 2022, 65 of the 895 hedge funds tracked by Insider Monkey were long Snowflake Inc. (NYSE:SNOW), holding shares valued at $5.1 billion. Altimeter Capital Management was the hedge fund with largest shareholding in Snowflake Inc. (NYSE:SNOW), owning 17,001,796 shares valued at $2.4 billion.
4. Hilton Worldwide Holdings Inc. (NYSE:HLT)
ShawSpring Partners’ Stake Value: $60,604,000
Percentage of ShawSpring Partners’ 13F Portfolio: 10.73%
Number of Hedge Fund Holders: 60
Hilton Worldwide Holdings Inc. (NYSE:HLT) is a leading global hospitality company with a history dating back to 1919. Its portfolio comprises 18 world-class brands comprising 7,000 properties and 1.1 million rooms, in 122 countries and territories. The company also boasts 139 million members on its guest loyalty program, Hilton Honors.
Like Snowflake Inc. (NYSE:SNOW), Hilton Worldwide Holdings Inc. (NYSE:HLT) was a new addition to the 13F portfolio of Dennis Hong’s ShawSpring Partners. The hedge fund holds 543,825 shares of Hilton Worldwide Holdings Inc. (NYSE:HLT), representing 10.73% of its 13F Portfolio.
Hilton Worldwide Holdings Inc. (NYSE:HLT) witnessed a significant recovery in its financial performance in Q2 2022, compared to the Covid19 pandemic era. Its total revenue increased by 68% y-o-y to $2.2 billion, while its net income surged by 187% y-o-y to $367 million, for three months ended June 30, 2022.
Following the earnings release, Baird analyst Michael Bellisario raised the price target on Hilton Worldwide Holdings Inc. (NYSE:HLT) shares to $156 from $154 and maintained an ‘Outperform’ rating on its shares.
Hilton Worldwide Holdings Inc. (NYSE:HLT) also witnessed an increase in bullish sentiment from hedge funds in Q2 2022. The number of hedge funds invested in the company increased from 52 in the previous quarter to 60 hedge funds, according to the data gathered by Insider Monkey. These funds held shares valued at $3.7 billion. Its largest shareholder was Pershing Square with ownership of 9,908,602 shares valued at $1.1 billion.
3. Coupang, Inc. (NYSE:CPNG)
ShawSpring Partners’ Stake Value: $85,949,000
Percentage of ShawSpring Partners’ 13F Portfolio: 15.21%
Number of Hedge Fund Holders: 37
Coupang, Inc. (NYSE:CPNG) is a leading ecommerce company based in Seoul, South Korea. It offers a variety of ecommerce related services including same-day and next-morning delivery of groceries and general merchandise, delivery of prepared foods through Coupang Eats, and video streaming through Coupang Play. Its shares started trading on the NYSE in March 2021.
Dennis Hong’s ShawSpring Partners holds 6,741,064 shares of Coupang, Inc. (NYSE:CPNG), making up for 15.21% of the hedge fund’s 13F portfolio. ShawSpring Partners added the stock to its portfolio in the previous quarter and reduced the stake by 5% in Q2 2020, compared to the previous quarter.
According to Insider Monkey data on nearly 900 hedge funds, 37 hedge funds held shares of Coupang, Inc. (NYSE:CPNG), valued at $2.9 billion, as of Q2 2022. The largest shareholder was Maverick Capital holding 84,520,968 shares valued at $1.1 billion.
2. Sea Limited (NYSE:SE)
ShawSpring Partners’ Stake Value: $130,217,000
Percentage of ShawSpring Partners’ 13F Portfolio: 23.05%
Number of Hedge Fund Holders: 65
Singapore-based Sea Limited (NYSE:SE) is a leading consumer internet company in Southeast Asia and Taiwan. It operates three core businesses: Shopee – an ecommerce platform, Garena – a global games developer and publisher, and SeaMoney – a digital payments and financial services provider. Garena boasted 619.3 million quarterly active users while SeaMoney had 52.7 million quarterly active users in Q2 2022.
Dennis Hong’s ShawSpring Partners holds 1,947,612 shares of Sea Limited (NYSE:SE), making up for 23.05% of the hedge fund’s 13F portfolio. ShawSpring Partners’ stake increased by 3% in Q2 2022, compared to the previous quarter.
As of Q2 2022, 65 hedge funds out of the 895 hedge funds tracked by Insider Monkey were bullish on Sea Limited (NYSE:SE) and held shares valued at $2.7 billion. Tiger Global Management LLC holds the highest number of shares among hedge funds with ownership of 8,197,383 shares, valued at $548 million.
1. IAC Inc. (NASDAQ:IAC)
ShawSpring Partners’ Stake Value: $233,124,000
Percentage of ShawSpring Partners’ 13F Portfolio: 41.27%
Number of Hedge Fund Holders: 39
IAC Inc. (NASDAQ:IAC) is a technology conglomerate comprising of multiple category leading businesses. IAC Inc. (NASDAQ:IAC) has a history of building and growing businesses organically as well as through mergers and acquisitions and spinning them off as standalone public companies. Notable public companies created by IAC Inc. (NASDAQ:IAC) include Expedia Group, Inc (NASDAQ:EXPE), TripAdvisor Inc (NASDAQ:TRIP), and Match Group Inc (NASDAQ:MTCH), among others.
ShawSpring Partners holds 3,068,629 shares of IAC Inc. (NASDAQ:IAC), accounting for 41.27% of the hedge fund’s 13F portfolio.
As of Q2 2022, out of the 895 hedge funds tracked by Insider Monkey, 39 held a stake in IAC Inc. (NASDAQ:IAC), with the total shares held by these hedge funds valued at $1.5 billion. ShawSpring Partners is the largest hedge fund shareholder.
You can also read Jim Cramer is Talking About These 10 Stocks in September and 10 Best Data Center Stocks To Invest In.
Follow Insider Monkey on Twitter
Suggested Articles:
15 Best Security Stocks to Buy Now
10 Best Vanguard Stocks to Buy Now
15 Best Semiconductor Stocks to Buy Now
Disclosure: None. Top 6 Stock Picks of Dennis Hong’s ShawSpring Partners is originally published on Insider Monkey.
